Newark's Prudential Center: A Key Player in Newark's Re-Branding Efforts

Patrick Rishe
, ContributorI cover the economics of the sports industry.Opinions expressed by Forbes Contributors are their own.

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SYNOPSIS: There are many negative stigmas associated with Newark, NJ. And given some of the economic and crime rate data available, understandably so. But one considerable ray of shining light gleaming from within the community is the Prudential Center. Though they will soon be losing their NBA tenant to Brooklyn, I was thoroughly impressed with the modernness of the facility, its versatility in attracting a wide array of events, and the inclusive feel the facility gives to event attendees. Among the top drawing sports venues of its size in terms of annual event attendance, it is the hope of local leaders that Prudential's success can be a part of Newark's urban renewal.

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According to a facility industry publication called Venues Today, the Prudential Center in Newark, NJ ranked 10th in the world in their 2011 year-end report in concert/event gross revenues for facilities with capacities between 15,000 and 30,000 seats.

Specifically, they generated $30.3 million in gross revenues. For comparison, Staples Center in L.A. and Madison Square Garden in Manhattan generated $60 M and $56 M, respectively. The only other American arenas of that size to out-gross Prudential were the Wells Fargo Center in Philly and the HP Pavillion in San Jose with $37 M and $33 M, respectively.

When I first learned of these statistics, I was admittedly surprised because - like so many of us and perhaps most famously Conan O'Brien - negative stereotypes associated with Newark abound. Given economic data from the Census on the comparative poverty levels in Newark (21% of families living in poverty compared to the national average of 10%) and crime rate data (Newark is ranked 23rd among 400 cities in 2010's city crime rate rankings), one can understand why such stereotypes exist.

The Rock, however, may be a key element to urban renewal.

Newark is currently undergoing a major revitalization. The Prudential Center, the New Jersey Performing Arts Center, The Newark Symphony, Riverfront Stadium and Red Bull Park in nearby Harrison and home to Major League Soccer's New York Red Bulls represent just part of the nearly $2 billion in construction underway.

Robert Sommer, President of Rock Entertainment Management, was kind enough to take me on a walking tour of the facility on Dec 20th just prior to an NHL contest between the New Jersey Devils and the New York Rangers.